Global program or projects may be subject to laws both here in the U.S. and in the host country. Examples of legal issues that may arise in the host country are establishing legal status; entity or tax filing and auditing requirements; and regulations regarding physical office or housing rentals. Several U.S. laws govern a U.S. organization’s conduct in a foreign country, such as export, anti-boycott and money laundering controls.
Setting up programs and activities in a foreign country often triggers local reporting and compliance requirements once a legal structure has been determined and established. Hiring local workers, long-term working arrangements for home-country employees, and opening offices or other locations are all examples of activities that often trigger local-country reporting and compliance requirements.
The reporting and local compliance requirements vary greatly by country. Local professional assistance (e.g., legal counsel) must be engaged to ensure all requirements are being met timely and accurately.